EA Shareholders Approve $55 Billion Saudi PIF Takeover: Will Battlefield and Madden Survive Foreign Ownership?
Electronic Arts’ proposed $55 billion sale to a Saudi Arabia Public Investment was approved in a shareholder vote on Monday. Pending approval from government regulators before the deal can become officially finalized. Saudi Arabia’s Public Investment Fund would own 93.4% of the EA Sports, Battlefield, and Sims publisher, while the other 5.5% would be owned by Silver Lake Partner, an investment fund run by a US private equity firm, if the acquisition is approved.
An EA Revival or Fall From Grace?
The deal appears to be a massive gamble for Saudi Arabia who has reportedly started to have a strain on their finances following the deal, which would be the largest ever leveraged buyout. While the deal awaits government approval, a handful of U.S. senators have expressed concerns over the deal warning of potential security risks and foreign influences. 
In a letter sent to Scott Bessent, the Secretary of the Treasury, two Senators urged him to “apply searching scrutiny to this unprecedented, proposed foreign privatization of a major American technology and entertainment company.” The pair of Senators also alleged that the decision by Saudi Arabia to invest in sports and video games are “leveraging long-term shifts in public opinion” of the country than they are about actually making money.
EA has been under scrutiny for several years, with declining performance in their hit series such as Madden, and Battlefield, though the latter seemed to have struck gold with Battlefield 6. As well as the increasingly insane prices of Sims and the games DLC. Could these titles moving under Saudi Arabia leadership change the tides or just accelerate the decline of the once legendary EA name?
What are your thoughts on EA becoming a foreign owned company? Does the deal change your future decisions about buying EA games? Join us in The GamerzTheory Discord and let us know.
Comments (0)